Acquisition, etc

MITIE Group PLC
16 August 2000

MITIE GROUP PLC ('MITIE')


MITIE announces that it has agreed to acquire the outstanding minority
shareholdings of three subsidiary companies:

MITIE Engineering Services (North) Ltd ('MES North') - 19.2% of the issued
share capital for a consideration of £1,299,500. 

MITIE Engineering Services (Scotland) Ltd ('MES Scotland') - 48.65% of the
issued share capital for a consideration of £1,335,960. 

MITIE Roofing (South East) Ltd ('Roofing') - 49% of the issued share capital
for a consideration of £859,264.

MES North and MES Scotland operate as mechanical and electrical engineering
contractors in the North of England and Scotland respectively. Roofing
provides roof erection and repair services to clients in the South East of
England.

All three acquisitions are made in accordance with the terms of the agreement
between MITIE and the employee shareholders of MES North, MES Scotland and
Roofing entered into on 7th February 1994, 20th October 1994 and 1st May 1995
respectively.

The total consideration of £3,494,724 will be satisfied by the issue of
1,149,107 New Ordinary Shares of 5p each in MITIE (valued at £3.00 per share
being the attributable market price per MITIE share on 17th May 2000) and
£47,404 in cash.

After the acquisition MITIE will own 100% of MES North, MES Scotland and
Roofing.

Application will be made for the 1,149,107 New Ordinary Shares of 5p each in
MITIE to be admitted to the Official List, maintained by the UK Listing
Authority, and to trading by the London Stock Exchange. Upon admission the New
Ordinary Shares will rank pari passu with the existing Ordinary Shares (except
that there will be no entitlement to dividends payable in respect of the year
ended 31 March 2000).

Copies of this announcement are available, free of charge, from Merrill Lynch
International, 20 Farringdon Road,  London EC1M 3NH for the next two business
days from the date hereof.